A Jan. 2 proposal from Chaos Labs, a blockchain risk management platform, has faced stiff pushback from Aave community members who question its safety and potential implications. The proposal, co-authored by Llamarisk, a decentralized finance (DeFi) risk management platform, seeks to hardcode Ethena’s USDe’s price to match USDT’s price on Aave’s price feed. The authors argue that doing so would protect Aave users from secondary market fluctuations. Detractors argue that pegging USDe to USDT introduces risks due to the inherent differences between the two assets. While USDT is designed to hold a fixed value, USDe is not a stablecoin and operates under a different mechanism, relying on ETH-backed positions. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io